Frequently Asked Questions

The Iemas system makes payments via EFT (electronic fund transfer) the day after your application was activated and the amount is available the next day as it takes +- 24 hrs after the file was sent to the bank.
To have access to the full range of Iemas products and services, an individual must belong to a participating employer group/company where Iemas has a salary deduction facility. Certain products are available to the general public and these include: Short-term insurance and the Purchase Card. Currently approximately 600 employer groups offer the Iemas services to their employees. If you would like to schedule a professional presentation or if you need more information regarding how your company can share in the benefits, please contact one of our marketing managers to find out more! Membership application forms are available from all Iemas offices.
After the end of every financial year, the Iemas Board decides on the percentages for each product line based on Iemas’ performance. The benefit on short-term insurance is paid out in cash to members or it is combined with the financing benefit. The financing benefit is split into two (this ratio also confirmed by the Board) of which a part is credited to one of the accounts or paid into the Iemas card account and the second part is credited to the member’s Deferred Benefit Payment Fund (this Fund earns interest as well). The amount credited to one of the financing accounts can be claimed by the member and will then will be paid via EFT into his/her bank account. The reserve fund, with interest, is paid out to a member upon termination of membership, after the end of the financial year, when the member applies for payment.
The reserves, or DBPF (Deferred Benefit Payment Fund), form an important part of Iemas’ financing strategy. Instead of the Iemas board allocating the reserves required to a general reserve that cannot be linked to a particular member, they are allocated to a specific member. The benefit to the member includes:

  • He/she builds up a nest egg without having to do anything – All they need to do is to make use of Iemas’ services
  • This nest egg is tax free (tax only applicable to interest received)
  • He/she receives interest on the fund at an excellent rate
  • Can serve as security for loans where Iemas requires security
  • A member’s accumulated DBPF is paid out to the member when he/she terminates membership or he/she reaches retirement age
Every year, active members receive a statement of benefits detailing the benefit percentage, benefit amount per product, the amount paid out, the amount paid into the member’s reserve fund as well as the interest received for the year and the total amount of the reserve fund after the latest allocations.
It’s paid out in November.
If you resign before 31 August (Iemas financial year end), the fund will be paid out on a date set by the Board, in the following financial year. If you resign after 31 August, your final interest and dividends on your reserve fund will only be calculated at the end of the next financial year (31 August) and paid out in the year after that. Members must apply for payment of the reserve fund.
If you settle your account after the salary deduction schedule is sent to your employer, there will be a last deduction. Iemas will effect a refund.
The Owner of the vehicle must request the Natis document from Iemas, and must re-register the vehicle within 21 days after receipt of the Natis, where the Owner of the vehicle should then be registered as Title Holder and Owner of the vehicle.
Credit life insurance is an assurance product which covers outstanding debt, for example in the case of vehicle financing, a personal loan or a housing loan. The purpose of this product is that, if you should pass away or become disabled before you have repaid the full amount owed, this insurance will settle the outstanding debt on your behalf. If you have, for example, financed a vehicle for R250 000 and you pass away and an amount of R150 000 is still outstanding, the total debt will be covered by the policy and will not be claimed from your estate.
Debt for goods such as a vehicle, home improvements or a personal loan is usually only over a short-term and in most cases, this is not included in a person’s longer term financial planning. In the event of death or disability, either the dependants of the debtor or the debtor himself may be left with outstanding debt. It is therefore in the best interest of any person with outstanding debt to ensure that he/she has sufficient credit life insurance in place to protect him/her and his/her dependants should the unforeseen happen.
Iemas’s credit life insurance product is tailor-made specially for our members and for the Iemas environment. It is a monthly policy, so you don’t have to pay interest on a lump sum premium for the full term of the loan. Furthermore, Iemas strives to keep premiums below market trends and so far we succeeded very well in this regard. Claims handling is fast and efficient and is focussed on minimising the trauma already experienced by the member or his/her family.
When you apply for financing, Iemas will offer the credit life insurance product to you and advise you of the cost, cover and most important conditions applicable. You may be asked to complete a simple application; be sure that you read and understand the few health related questions and answer them truthfully. Acceptance is guaranteed in most cases. If, however, you feel that complete long-term financial planning is needed, Iemas has the necessary expertise available to assist you in this regard as well.
In terms of the National Road Traffic Act of 1996, every vehicle that is under a contractual agreement, must be registered with the Financial institution as the title Holder, and the person who has the right to use the vehicle, as the Owner. During the term of the contractual agreement, the original Natis document must be kept by the financial Institution and in this case, by Iemas.
Only when the agreement is paid in full.
The insurance company will send a request to Iemas, who must de-register the vehicle in their capacity as Title Holder of the vehicle at the local authorities.
Please contact your nearest Iemas Office, to update your details.
If the account is settled by a Private individual, within 10 working days after receiving the full settlement.
Iemas Short-term insurance has no paperwork that you have to complete. All our calls are voice recorded to ensure protection for both parties. You can take out a policy, make amendments to your policy and submit claims telephonically.
If your premium has been returned you can leave the money in your account and as a service to you we will debit your account double the next month. If a second premium is returned, please contact our call centre to assist you.
Buildings are covered on a new for old basis. This means that old, damaged items will be replaced with new ones when you claim (e.g. a burst geyser will be replaced with a new one). So when calculating the replacement value of your building it includes the actual cost for materials and labour for the garages, domestic outbuildings, walls, tennis court, driveway and swimming pool. These costs, like many others, are determined by the building industry. You should also take into consideration the cost to demolish damaged structures, remove the debris, payment to professionals and municipal services, as well as other similar charges before any new construction can start. You should not include the value of the land.

Underinsurance is a potential risk for any home owner and can cause problems and losses, especially with the insurance of buildings and household goods. Underinsurance basically means that, in the event of a claim, the insured amount is deemed to be less than the actual value of the property or possessions.

The following is an example of how underinsurance is calculated:

Insured amount of building R800 000
Actual value of building R1 000 000
Amount of claim R 50 000

Calculation:
Sum insured

—————
X Claim amount = Settlement amount
Actual value

Example:
R 800 000
—————
R 1 000 000

X R50 000 = R40 000
In other words, due to underinsurance, only 80% of the claim amount will be payable to the client or, in this example, R40 000.

Due to the sudden and dramatic increase in building costs in the past couple of years, the number of property claims that were reduced because of underinsurance has increased.

We therefore urge you to review your property’s insured value to establish whether it is sufficient. In order to make this evaluation process easier for you, your Iemas policy provides for an automatic inflation increase to the insured amount of your building. This increase takes effect on the anniversary (the renewal date) of your policy in order to protect you from underinsurance due to inflation. However, this increase may not be adequate, as replacement values etc. are constantly changing and it is the responsibility of the owner of the property to ensure that the insured amounts are adequate at all times.

The contents include items and personal belongings that are kept in a private residence of which you are the owner, the outbuildings and the garages at your street address. The amount for which you insure your belongings must be its replacement value. The replacement value is what it will cost you, at the time of a claim, to replace all your belongings with similar new ones. We can provide you with an inventory to assist you in itemising the contents and determining their values.
You will be underinsured and the principal of average will be applied. This means that you carry part of the risk should there be a loss. Example:

Value of your property 24,000
Sum Insured 18,000
Difference 6,000
In the event of a claim of R12,000 the insurance company will only pay you as follow:
R18,000/R24,000 X R12,000/1 = R9,000
You insure your belongings against burglary or theft but also against the elements. Can you afford to be covered for only part of your loss when your house burns down or is flooded in a storm?

The area you live in, the security measures at your house, the construction of your walls and roof, your claim-free years and the excess you agree to pay will influence your premium. This is also part of the important information you have to disclose because when you pay the wrong premium, it can constitute in a non-payment of a claim.
The retail value is the average price a dealer would sell a vehicle for, taking into account the vehicle’s age, condition and mileage. If your vehicle is either a writeoff, stolen or hijacked without being recovered, the settlement amount will be based on its retail value less the applicable excess. The maximum that will be paid for a claim is the value you insured your vehicle for. The amount for which you insure your vehicle must be the current retail value, according to the auto dealers digest or commercial dealers digest, duly adjusted for condition and should include the additional value of the improvements. The market value is a lesser value for which a discounted premium is charged and is the average between the trade value and retail value of your vehicle.
Vehicle theft is an unfortunate but very real part of everyday life in South Africa. You can take a preventative approach to the problem by requesting the installation of a quality anti-theft device in order to minimize or prevent vehicle theft and hijacks. Remember that a VESA approved immobiliser is self-activating so you cannot forget to activate it as is the case with a gear lock. A VESA approved immobiliser is also far more complicated for the average car thief to override than a gear lock.
The insurer needs to see if there is any existing damage to the vehicle and if the vehicle exists. They also hereby confirm if the immobiliser is adequate and obtain the details of any non-standard accessories and sound equipment.
The type of vehicle, the area you live in and where the vehicle will be kept overnight, regular driver’s age, claim free years, security installed in the vehicle, the use of the vehicle and the excess you agreed to pay. This also forms part of the important information you have to disclose, because when an incorrect premium was paid, it can constitute in a non-payment of a claim.
In general there are 3 types of excesses.

  • Standard or basic excess – An excess is a specified amount of money or percentage that you are liable to pay as a first amount payable in the event of any claim being settled.
  • Additional excess – In some instances an additional excess might apply. This will be in addition to your basic excess for example when the driver is under the age of 25 years and the policy states you have to pay R1,000 for drivers under the age of 25.
  • Voluntary excess – This is an excess you choose. The voluntary excess is in addition to both basic excess and the additional excess of the policy.
This will give you the benefit of a reduced premium.
Blame is not a criterion in order to determine whether you need to pay an excess or not and therefore you are always liable for the excess. As part of our service we do however immediately initiate the excess recovery process from the guilty party and will refund your excess if we are successful with the recovery.
Claim free years are one of the factors that have an influence on your premium. When you do have a claim your claim free years are adjusted accordingly and therefore your premium will be increased.
The basic requirement for all types of insurance is that the person with the policy must have Insurable interest. This is one of the many factors that cause claims not to be paid. You must stand to suffer direct financial loss if there is a claim. You need to be the owner of the property. An insurance company might not wish to insure your property if you are not directly responsible for it.
This is a bonus that you receive as a discount on your premium after every year you have no claims. It is also referred to as a claim free group.
Various factors contribute to the necessity to increase premiums.

They are:

  • A very big increase (much more than inflation) in the cost of repairing vehicles occurred in the last few years. Because a lot more money is now paid out per claim, the portfolio comes under pressure if additional money is not generated.
  • The roads and infrastructure in our country have suffered as a result of the big increase in the number of vehicles on our roads. This has lead to more accidents.
  • The low interest rates and creative deals put together by vehicle dealers and financing houses have put a large number of people in a position where they could afford to buy expensive vehicles, often without the necessary driving experience.
A premium increase takes into account inflation and increasing costs to the insurer, and these are not limited to clients who claim, it involves the whole client base. Vehicle repairs become more expensive as parts and paint are imported. Household items also become more expensive every year and so increases are adjusted accordingly.

Because we are a broker we have different products with different insurers that we can offer to clients. Please call our contact centre for more information.
The scientific rating model uses a lot more information before it calculates a premium. It is constantly being refined and will eventually not only differentiate based on a vehicle’s manufacturer, but even on what time of day a person normally drives, how far the person stays from work, etc.

It was not used in the past because technology was limited in terms of gathering sufficient amounts of data. The rating model was also extensively tested for accuracy, and this happened over a period of years. We have reached a stage where we can very accurately determine exactly what percentage any individual should be paying into the premium pool to make it fair to everyone.

Interest is calculated daily on the outstanding balance as at beginning of the month plus the previous day’s interest.
Every application is evaluated on its own merit taking into account your affordability i.e. your income less expenses less external debt. Your basic salary is also considered and in the event of vehicle finance, the vehicle that you would like to purchase.
In the case of death or when you are declared 100% medically unfit to work this policy will pay out settle the outstanding balance of your loan. This policy does not provide cover for retrenchment.
Yes, you can provide your own policy with the same cash value as the outstanding debt.